Gold Prices In India May Soon Hit Rs 1 Lakh Per 10 Grams Amid Global Economic Uncertainty: Experts

Gold prices in India are inching closer to the milestone of Rs 1 lakh per 10 grams, as global economic and geopolitical uncertainties continue to drive investors toward safe-haven assets, according to commodity market experts.

A surge in global gold prices, triggered by renewed fears of a slowdown in the US economy and rising trade tensions, is expected to further boost domestic gold rates. These fears have intensified following the reintroduction of aggressive tariff policies by the US President Donald Trump.

Global brokerage firm Goldman Sachs has projected that gold could climb to $3,700 per ounce in the near term. If trade tensions escalate further, prices might even hit $4,500 per ounce, the firm estimated. If such levels are reached internationally, Indian gold prices on the Multi Commodity Exchange (MCX) could rise to Rs 1 lakh or even Rs 1.25 lakh per 10 grams, analysts suggest.

Gold has already proven to be a rewarding investment over the past few years. Over the last five years, gold prices have more than doubled, rising by over 110 per cent from Rs 44,906 per 10 grams on April 17, 2020, to Rs 95,239 per 10 grams as of April 17, 2025. So far this year alone, prices have increased by nearly 25 per cent.

Potential US Recession

Anuj Gupta, Head of Commodity and Currency at HDFC Securities, attributed the recent rally in gold to growing fears around a potential US recession and ongoing trade war concerns, according to an IANS report. “The safe-haven demand has spiked as investors worry about the economic impact of Trump’s tariffs. According to US Fed Chair Jerome Powell, a one per cent hike in tariffs could reduce US economic growth by 0.10 per cent,” Gupta said.

Despite recent gains in equity markets, analysts believe there is still upside potential for gold. “Any correction in gold should be seen as a buying opportunity,” Gupta added, highlighting the ongoing support from inflation concerns and geopolitical instability.

Navneet Damani, Group Senior Vice President at Motilal Oswal, shared a similarly bullish outlook. “Persistent trade tensions, inflationary pressures, and central bank gold purchases will continue to support prices,” he said. Damani sees near-term support for gold at Rs 91,000 and resistance around Rs 99,000, advising investors to follow a ‘buy on dips’ strategy amid sustained global policy uncertainty.

Both domestic and international gold markets are expected to remain on a firm footing, offering continued opportunities for investors looking for stability in volatile times.

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